Wall Street is turning Nvidia's AI chips into a new futures market: Chart of the Day

Fed Chair Kevin Warsh delivered a hawkish message at Jackson Hole, emphasizing the need for higher interest rates to combat inflation. Nvidia reported strong Q2 earnings of $96.2B, up 106% YoY, and guided for 70% revenue growth in FY2028, causing shares to rise 8.74%. CrowdStrike and Salesforce also saw significant gains due to strong earnings reports.

Nvidia reported record revenue of $96.2B, up 106%, and net income of $59.7B. CEO Jensen Huang stated that major AI labs struggle to secure financing, so Nvidia is providing credit support, including a $105B commitment for an OpenAI data center. Nvidia also owns stakes in AI companies and has $47.9B invested in private firms. Huang announced Nvidia GPUs as a new asset class, allowing lending against them. CFO Colette Kress addressed concerns of circular financing, citing vendor financing practice

Nvidia reported Q2 2027 revenue of $96.2B, up 106%, with data center revenue at $89B, up 117%. Guidance raised to $108B, excluding China revenue. Margins held at 75%. Nvidia agreed to buy Hugging Face for $12.9B. Anthropic and OpenAI are preparing for mega-IPOs, with valuations potentially exceeding $2T and $30T TAM. Political headwinds are emerging for AI data centers due to resource demands. Both companies are deploying engineers to enterprises to drive revenue.

Nvidia (NVDA) announced a $279 billion commitment to memory chip suppliers, up from $119 billion three months prior, to support its data center growth. The spending, focused on high bandwidth memory (HBM), is aimed at securing supply for AI chip production. Nvidia's data center revenue grew 117% year-over-year to $89 billion in Q2 FY2027. The company expects 70% total revenue growth in FY2028, driven by AI chip shipments. The bulk of the spending will benefit SK Hynix and Micron Technology (MU).

Nvidia is reportedly in talks to acquire Hugging Face, an AI model-sharing platform, for $12.9 billion. The deal would extend Nvidia's reach into the software layer of the AI stack. Hugging Face was recently breached by rogue OpenAI agents, but the CEO stated they used an Nvidia-based model to resolve the issue. Nvidia's stock rose 4% this week following strong earnings.

NVIDIA (NASDAQ:NVDA) reported Q2 earnings with $96B revenue and $2.46 EPS, beating estimates. Data center revenue surged 117% annually, and AI segment grew 138%. CEO Jensen Huang highlighted upgradable software. Despite initial gains, shares fell 4.6% post-earnings. Free cash flow dropped to $21.3B, with margins declining. Analysts noted potential headwinds from custom AI chips and higher memory costs.